Answer: organizations that are in the middle of a series of organizations that distribute goods from producers to consumers.
Explanation:
Intermediaries are the middlemen in the distribution chain that purchases from one party and then sells to another party.
They're the organizations that are in the middle of a series of organizations that distribute goods from producers to consumers. Intermediaries can also hold stock and carry out marketing and logistics functions for the manufacturers.
Answer:
c. either stocks or bonds
Explanation:
Based on the information provided within the question it can be said that they can either choose stocks or bonds to issue. This is because both are securities that can be issued in small denominations. Since the company can create a set amount for both of these securities before offering them to the public, therefore controlling the denominations.
Answer:
d. is a form of regulation.
Explanation:
A corrective tax is a market-based policy option used by the government to address negative externalities. Thus, the tax on these negative externalities is increased and thus could cause decreased production
Answer:
c. 15.8%
Explanation:
The cost of equity is the WACC (weighted average cost of equity)
WACC formula = wE*rE + wD*rD(1-tax) , whereby
wE = weight of equity = 65%
rE = cost of equity = 20%
wD = weight of debt=35%
rD(1-tax ) = after tax cost of debt =8%
WACC = (0.65 *0.20) + (0.35*0.08)
= 0.13 + 0.028
= 0.158 or 15.8%
Therefore, the overall cost of capital is 15.8%
